The Seven Deadly Tax Sins: Commonly Missed Deductions

It's that time again, the April 15 tax deadline ismuch as $4,000. For those at higher adjusted gross
looming large. If youre like most people, you haventincomes limits ($80,000 single, $160,000 married filing
gathered all of your tax records, let alone filled yourjointly) the deduction is limited to $2,000 for 2004.
return.Before you dig in and get started, take thisThis deduction must be coordinated with other
opportunity to first review a list of a few taxeducation credits and savings vehicles.Work-Related
deductions to which you may be entitled if youExpenses: You can write off many work-related and
itemize deductions but most people overlook. Manywork-search expenses, such as education that
of these deductions are subject to various limitations,maintains or improves your skills, certain business
so consider getting professional help from your taxtools, dues to labor unions, cell phone depreciation,
advisor and accountant to determine whichcertain expenses to search for job in your present
deductions you qualify for and which items apply tooccupation, including employment agency fees, resum
your specific circumstances. Remember, there arepreparation, and travel expenses (local and out of
hundreds of deductions throughout the tax laws;town) and cleaning and laundry bills when on a
many of them can be quite obscure but also quitebusiness trip. Work-related expenses are subject to
lucrative. Here are seven commonly missedthe 2% floor on miscellaneous deductions.
deductions to keep top of mind:Points on Refinancing:Furthermore, if you buy a new SUV for business use
With interest rates so low in 2003, there was a greatthat weighs more 6,000 pounds, and file Schedule C
deal of refinancing activity. Any points you pay toor other business tax return you may be allowed to
refinance your home can be deducted ratably overwrite off the full amount (up to $102,000 in 2004) in
the life of the new loan. Furthermore, all unamortizedone year as a business expense subject to
points on old refinancing are deducted in the year oflimitations.Clean-Fuel Deduction: If you are not in the
the new refinancing.Health Insurance Premiums: Anymarket for a large SUV for business, you still can get
health insurance premiums you pay, including somea deduction for your personal car, another
long-term care premiums based on your age, areabove-the-line deduction of up to $2,000 for 2003
potentially deductible. Medical expenses have to reach($1,500 for 2004) of the cost of buying a clean-fuel
7.5% of your adjusted gross income before theyvehicle or a car that uses a significant source of
give you any tax benefit. Self-employed people canenergy other than gasoline. That includes hybrid cars,
deduct 100% of health insurance premiums paid forsuch as the Toyota Prius, the Honda Insight and the
themselves, their spouses and theirHonda Civic Hybrid. You get the deduction in the year
dependents.Non-Cash Charitable Contributions: If youyou start using the car, and you must be the original
have used your charge card for contributions toowner.Investment and Tax Expenses: In addition to
charity, remember that the deduction is allowed inforgetting to deduct tax-preparation fees and the
the year that you made the charge, not when youportion of your legal, accounting or financial planner
actually pay the bill. Also, you may write off certainfees that relate to tax planning, many people miss
out-of-pocket expenses related to charitablededucting investment expenses. Those include certain
activities. Appraisal fees paid to value propertyfees paid to your financial advisor and/or broker and
donated to charities may be taken as a miscellaneouscertain IRA fees you may pay directly. It also may
deduction subject to the 2% floor on miscellaneousinclude mileage for meetings and long-distance phone
deductions.Higher-Education Expenses: If yourcalls to your advisor or broker. Dont forget to include
adjusted gross income wasnt more than $65,000deductions for the cost of your investment
($130,000 for married, filing jointly) in 2003, you canpublications or subscriptions, safe deposit boxes used
get an above-the-line deduction for as much asfor investment-related documents, these deductions
$3,000 for any higher-education tuition and feeare subject to the 2% floor on miscellaneous
expense you paid. For 2004, the deduction can be asdeductions.